Consumers took on less debt in the month of June than economists predicted. Despite projections of consumer credit jumping to $10.3 billion, Federal Reserve reports released Tuesday afternoon indicate that consumer credit only rose by $6.5 billion, which represents the smallest increase over the last eight months.
In June, consumers kept their credit cards in their wallets a little more than previous months. Despite the increase in overall consumer credit, revolving credit, which applies to credit card debt, was reduced to $3.70 billion in June.
Consumers must be shopping for cars and investing in their future because non-revolving credit, which includes student loans and auto financing, rose by $10.15 billion to $1.713 trillion during June, on a seasonally adjusted basis. Federal student credit outstanding rose slightly to $470.7 billion in June. Those numbers are reported without seasonal adjustments.
Read the Federal Reserve full report.